Will Common Stock have a credit or debit balance?
credit balance
Will Salaries Expense have a credit or debit balance?
credit balance
Amounts owed to suppliers for supplies purchased on account are defined as:
Accounts Payable
Incurring an expense for advertising on account would be recorded by:
debiting an expense
Income Tax Payable has a debit or credit balance?
credit balance
T/F: Expense accounts increase with a debit and decrease with a credit.
True
T/F: Borrowing cash from the bank is recorded as debit to cash.
True
T/F: Revenue accounts increase with a debit and decrease with a credit
False
Purchasing office supplies on account cases assets to increase and liabilities to increase.
True
T/F: For each transaction, the total debit amounts must equal the total credit amounts
True
Childers Service Company provides services to customers totaling $3400, for which it billed the customers. How would the transaction be recorded?
Debit accounts receivable $3400,
Credit service revenue $3400
A company received a bill for newspaper advertising services received, $460. The bill will be paid in 10 days. How would the transaction be recorded today?
Debit advertising expense $460
Credit accounts payable $460
When a company pays utilities of $1760 in cash, the transaction is recorded as:
debit utilities expense $1760
credit cash $1760
Summer Leasing received $110000 for 24 months rent in advance. How should Summer record this transaction?
debit cash
credit unearned revenue
Assume that $17900 cash is paid for insurance to cover the next year. The appropriate debit and credit are:
debit prepaid insurance 17900
credit cash 17900
When a company pays $2100 dividends to its stockholders, the transaction should be recorded as:
debit dividends
credit cash
On March 3, Cobra Inc purchased a desk for $410 on account. On March 22 Cobra purchased another desk for $505 also on account, and then on March 24 Cobra paid $470 on account. At the end of March what amount should Cobra report for desks (assuming these t
$915
For each transaction recorded in an accounting system, the basic equation that must be maintained at all times is:
assets = liabilities + stockholders equity
which of the following is not an asset account?
accounts payable
An expense has what effect on the accounting equation?
decrease stockholders equity
Revenues have what effect on the accounting equation?
increase stockholders equity
Investments by stockholders have what effect on the accounting equation?
assets increase and stockholders equity increases
Providing services and receiving cash will:
increase assets & increase stockholders equity
Which of the following accounts has a debit balance
salaries expense
Which of the accounts are increased with a debit and decreased with a credit?
assets, dividends, and expenses
ON July 7, Siants Inc received $10000 in cash from a customer for services to be provided in Oct 10. Which of the following describes the transacation should be recorded on July 7?
Debit Cash $10000
Credit Unearned Revenue $10000
Posting is the process of:
transferring the debit and credit information from the journal to individual accounts in the general ledger
A trial balance can best be explained as a list of:
all accounts and their balances at a particular date